EXAMPLE 1:
Elizabeth Adams is dually entitled to retirement insurance benefits (RIB) and wife's
benefits. After processing her 2014 annual report of earnings in June 2015, Mrs. Adams
now has a $1,500 overpayment for 2014. She received additional delayed retirement
credits (DRC), which increased her RIB benefit effective January 2015. The resulting
recalculation of her wife's benefit and dollar down rounding of both benefits resulted
in a $1.00 payment decrease for January through May 2015, which makes her total overpayment
amount $1,505. However, since the $5.00 overpayment in 2015 is due to dollar down
rounding, we should waive the $5.00 overpayment and document the record in case of
a subsequent overpayment determination. Mrs. Adams is responsible for the $1,500 overpayment.
EXAMPLE 2:
Alex and Diane Fraser each receive $80.00 a month in child's benefits. Their brother
Charles was born January 2014 and lives in the same household. Mr. and Mrs. Fraser
filed for benefits for Charles in March 2014. Charles was entitled to benefits beginning
January 2014. We reduced Alex and Diane's benefits to $53.00 a month effective January
2014. Alex and Diane each received $80.00 for January and February, which caused them
to be overpaid $54.00 each. Charles is due $53.00 for January and February 2014. After
netting the amount due the family against the amount paid, Alex and Diane are overpaid
$1 each. Waive Alex and Diane’s overpayment due to dollar down rounding and document
the record in case of a subsequent overpayment determination.
C. Additional Reference
GN 02250.350 Waiver Under the $1,000 Administrative Tolerance